Have you ever felt like your entering the forex market at exactly the wrong time? You see a great day trade setting up and enter, only to see the price almost instantly reverse, stop you out, and then run in the direction of your original forex trade. If that sounds familiar than you have been the victim of what I call a day trading stop run reversal. Market makers, banks, and institutions do not intentionally move the price in this fashion to hurt retail traders, they do so to profit from them.
Reversal Times – Applied To Forex – Often times we forget that the forex market is made up of people; humans who one and all have some measure of fear, greed, fatigue, hunger, as well as many other psychological and physical factors. Applying this to your current trading method is something that can give you an edge. Price reversal times applied to the forex market is a new theory for many, so let’s take a moment to examine it deeper and the psychology and emotions that cause it.